CC - Item 6C - Release of Security Deposit - Tract Map No. 72347 (8479 Garvey Avenue)ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: GLORIA MOLLEDA, CITY MANAGER
DATE: MAY 14, 2019
SUBJECT: RELEASE OF SECURITY DEPOSIT — TRACT MAP NO. 72347
(8479 GARVEY AVENUE)
SUMMARY
On May 9, 2017, K -Min Development, LLC, provided a security deposit in the form of a Time
Certificate of Deposit in the amount of $182,393.50 to guarantee the completion of off-site public
improvements related the mixed-use development at 8479 Garvey Avenue. Since the off-site
improvements have been completed to the satisfaction of the City Engineer, the security deposit
may be released to the developer.
STAFF RECOMMENDATION
It is recommended that the City Council:
1. Accept the completed off-site public improvements; and
2. Authorize the release of the security deposit in the amount $182,393.50 to K -Min
Development, LLC.
ANALYSIS
In accordance with the Conditions of Approval for Tentative Tract Map No. 72347 for a mixed-
use development at 8479 Garvey Avenue, approved by the Rosemead Planning Commission, the
developer was required to construct all new sidewalk, curb and gutter, driveway aprons, corner
curb ramp and tree wells along the frontage of the project; plant parkway trees; relocate water
meters; and install curb drains and survey monuments.
On May 9, 2017, the developer, K -Min Development, LLC, executed an Undertaking Agreement
to guarantee the completion of off-site public improvements at 8479 Garvey Avenue. As part of
the undertaking agreement, the developer provided a security deposit in the form of a Time
Certificate of Deposit in the amount of $182,393.50. Since the off-site public improvements have
been completed to the satisfaction of the City Engineer, the security deposit may be released to the
developer.
AGENDA ITEM NO. 6.0
City Council Meeting
May 14, 2019
Page 2 of 2
PUBLIC NOTICE PROCESS
The item has been noticed through the regular agenda notification process.
Submitted By:
Rey Alfonso, P.E.
Director of Public Works
Attachments:
A. Undertaking Agreement
B. Time Certificate of Deposit
Attachment A
Undertaking Agreement
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL, TO:
CITY OF ROSEMEAD
8838 E. Valley Blvd. Rosemead,
CA 91770
Attention: City Clerk
(Apace.4bove This Line n, Recorder's Use OP71))
t?xempt from recording fee. per Gov. Code 3 27383.
CITY OF ROSEMEAD
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP No. 72347
THIS 5U I. I MPROVEMENT AGREEMENT ("Agreement") is effective as of
day of , 2017, by and between the CITY OF ROSEMEAD, State of California,
acting and t gh its City Council, hereinafter referred to as "CITY" and
r (NAME)
_04/7f 44
ADDRESS)
hereinafter called the "SUBDIVIDER."
RECITALS;
A.: The CITY approved Tentative Map 72347' on 08/12/14 ("The Tentative Map"),
subject to certain conditions of approval, which conditions include construction of certain public
improvements (the "Improvements") as set forth in Exhibit A attached hereto an incorporated into
this Agreement.
B,: The SUBDIVIDER has filed the Map with the City Engineer of the CITY (the
"City Engineer") for presentation to the City Council for its approval.
C. The SUBDIVIDER has not yet completed the required Improvements to receive
a final reap and therefore must enter into an agreement with the CITY providing for the future
construction and installation of the Improvements, as required by Government Code section
66462(a)( L).
D. CITY and SUBDIVCR desire to enter into this Agreement providing for the
construction and installation of the Improvements.
AGREEMENT
NOW THEREFORE, in consideration of the faithful performance of the terms and
conditions set forth in this Agreement, the parties agree as follows:
1. D!* to Install Improvements. The SUBDIVIDER, for and in consideration of the
approval of the final map of that certain land division known as Tract Map 72347 hereby agrees,
at the SUBDIVIDER'S own cost and expense to furnish all labor, materials, and equipment
necessary to perform and complete, and within twenty-four (24) months from the date of filing of
said map, to perform and complete in a good and timely manner, the Improvements set forth in
Exhibit "A" to the satisfaction of the CITY. All required Improvements have an estimated cost of
construction of one hundred eiglety two thousands three hundred ninety three and fifty cents
($1$2,393.50) as shown on Exhibit "B."
2. Duty to Maintain Improvements. CITY shall not be responsible or liable for the
maintenance or care of the Improvements until CITY formally approves and accepts them in
accordance with its policies and procedures. CITY shall exercise no control over the
Improvements until approved and accepted. Any use by any person of the Improvements, or any
portion thereof, shall be at the sole and exclusive risk of the SUBDIVIDER at all times prior to
CITY's acceptance of the Improvements. SUBDIVIDER shall maintain all the Improvements in
a state of good repair until they are completed by SUBDIVIDER and approved and accepted by
CITY. Maintenance shall include, but shall not be limited to, repair of pavement, curbs, gutters,
sidewalks, signals, parkways, water mains, and sewers; maintaining all landscaping in a vigorous
and thriving condition reasonably acceptable to CITY; removal of debris from sewers and storm
drains; and sweeping, repairing, and maintaining in good and safe condition all streets and street
improvements. It shall be SUBDIVIDER's responsibility to initiate all maintenance work, but if
it shall fail to do so, it shall promptly perform such maintenance work when notified to do so by
CITY. If SUBDIVIDER fails to properly prosecute its maintenance obligation, CITY may do all
work necessary for such maintenance and the cost thereof shall be the responsibility of
SUBDIVIDER and its surety under this Agreement. CITY shall not be responsible or liable for
any damages or injury of any nature in any way related to or caused by the Improvements or their
condition prior to acceptance. Notwithstanding the above, SUBDIVIDER shall make available
for public use any streets, curbs, gutters, sidewalks or walkways, streetlights, street furniture,
storm drain improvements, fire hydrants, and any other facilities intended for general public use,
which are installed, altered or affected by the work, as soon as they can be safely placed in
service.
3. Performance Labor and Materials and WaffaqV Securi : SUBDIVIDER shall, at all
times, guarantee its performance of this agreement by furnishing to CITY and maintaining good
and sufficient security as required by the State Subdivision Map Act on forms approved by CITY
for the purposes. and in the amounts as follows:
a. To ensure a faithful performance of this agreement in regard to the improvements in
the amount of 100% of the estimated cost of construction for the improvements; and
b. To secure payment to any contractor, sub -contractor, persons renting equipment or
furnishing labor and materials for the improvement required to beconstructed or installed
pursuant to this agreement in the additional amount of 100% of the estimated cost of construction
of the improvements; and
c. To guarantee or warranty the work done pursuant to this agreement for a period of one
(1) year following the acceptance thereof by CITY against any defective work or labor done, or
defective materials furnished in the amount of 20% of the estimated cost of construction of the
improvements; and
d. To warranty, the setting of required subdivision monuments within one (1) year
following recordation of the Final Map in the amount of 100% of the estimated cost of setting
subdivisions monuments s shown in Exhibit `B."
c. To guarantee the landscape maintenance of all landscape improvements for a period of
one (1) year following acceptance of thereof by the CITY.
The securities required by this agreement shall be kept on file with the City Clerk. The terms of
the security documents required by this agreement are hereby incorporated in this agreement by
reference and copies attached hereto.
The security which guarantees performance can be released upon acceptance of the improvements
by the CITY. The security which guarantees payment to contractors, sub -contractors and persons
furnishing labor, materials or equipmdnt can be released six (6) months after acceptance of the
improvements by the CITY, less the total of all claims to which the CITY has been given proper
notice.
4. Non -Liability of CITY Hold Harmless and Indemnity by SUBDIVIDER;
a. The CITY shall not nor shall any officer or employee thereof, be liable or responsible
for any accident, loss, or damage happening or occurring to the work specified in this agreement
prior to the completion and approval of same; nor shall the CITY, nor any officer or employee
thereof, be liable for any persons or property injured by reason of the nature of said work, or by
reason of the acts or omissions of the SUBDIVIDER, his agents, or employees, in performances
of said work. All of said liabilities shall be assumed by the SUBDIVIDER. The SUBDIVIDER
further agrees to protect and hold harmless the CITY, its officers, and employees, in performance
of said work. All of said liabilities shaII be assumed by the SUBDIVIDER
b. SUBDIVIDER agrees to indemnify, defend and hold the CITY, its elective and
appointed boards, commissions, officers, agents, employees and consultants, harmless from and
against any and all claims, liabilities, losses, damages or injuries of any kind (collectively,
"Claims") arising out of SUBDIVIDER'S, or SUBDIVIDER'S contractors', subcontractors',
agents' or employees', acts, omissions, or operations under this Agreement, including, but not
limited to, the performance of the work and the use and operation of the Improvements prior
acceptance by CITY, whether such acts, omissions, or operations are by SUBDIVIDER or any of
SUBDIVIDER'S contractors, subcontractors, agents or employees. This indemnification
includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees,
attorneys' fees, and related costs or expenses, and the reimbursement of CITY, its elected
officials, officers, employees, and/or agents for all legal expenses and costs incurred by each of
them.
The aforementioned indemnity will apply regardless of whether or not CITY has
prepared, supplied or approved plans and/or specifications for the Improvements and regardless
of whether any insurance required under this Agreement is applicable to any Claims. The CITY
does not and will not waive any of its rights under this indemnity provision because of its
acceptance of the bonds or insurance required under the provisions of this Agreement.
SUBDIVIDER'S obligation to indemnify CITY will survive the expiration or termination of this
Agreement. CITY.
5. Insurance. During the term of this Agreement, SUBDIVIDER. shall maintain at its cost
and expense the following insurance coverage against Claims, including Claims for injuries to
persons or damages to property that may arise from or in connection with the performance of the
Work and the results of that Work by the SUBDIVIDER, its contractors, agents, representatives,
employees or subcontractors, with insurers with an A.M. Best's rating of no less than A:VH
unless otherwise accepted by the CITY in writing;
a. Commercial General Liability (CGL). SUBDIVIDER shall provide or cause to be
provided Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis,
including products and completed operations, property damage, bodily injury and personal &
advertising injury with limits no less than $5,000,000 per occurrence. If a general aggregate limit
applies, either the general aggregate limit shall apply separately to the Project and Property or the
general aggregate limit shall be twice the required occurrence limit.
b. Automobile Liability Insurance. SUBDIVIDER shall provide or cause to be provided
ISO Form Number CA 00 01 covering any auto (Code 1), or if SUBDIVIDER has no owned
autos, hired (Code 8), and non -owned autos (Code 4), with limit no less than $5,000,000 per
accident for bodily injury and property damage.
c. Workers' Compensation Insurance. SUBDIVIDER shall provide, or cause to be
provided, workers' compensation insurance as required by law, and shall cause its contractors and
their subcontractors, agents and representatives to maintain workers' compensation insurance as
required by the State of California, with statutory limits, and employer's liability insurance with
limit of no less than $1,000,000 per accident for bodily injury or disease. For services deemed
public works, by signing this agreement, SUBDIVIDER is certifying, pursuant to Section 1561 of
the California Labor Code, that: "I am aware of the provisions of Section 3700 of the Labor Code
which require every employer to be insured against liability for workers' compensation or to
undertake self-insurance in accordance with the provisions of that Code, and I will comply with
such provisions before commencing the performance of the work of this Agreement."
Contractor shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's
Liability Insurance (with limits of at least $1,000,000) for Contractor 's employees in accordance
with the Iaws of the State of California, Section 3700 of the Labor Code In addition, Contractor
shall require each subcontractor to similarly maintain Workers' Compensation Insurance and
Employer's Liability Insurance in accordance with the laws of the State of California, Section
3700 for all of the subcontractor's employees.
Contractor shall submit to Agency, along with the certificate of insurance, a Waiver of
Subrogation endorsement in favor of Agency, its officers, agents, employees and
volunteers.
d. Other Insurance Provisions. The insurance policies are to contain, or be endorsed to
contain, the following provisions:
i. Additional Insured Status. The CITY, its officers, officials, employees, and
volunteers are to be covered as additional insureds on the CGL policy with respect to Iiability
arising out of work or operations performed by or on behalf of the SUBDIVIDER including
materials, parts, or equipment furnished in connection with such work or operations. General
liability coverage can be provided in the form of an endorsement to the SUBDIVIDER's
insurance (at least as broad as ISO Form CG 20 10 1185 or if not available, through the addition
of both CG 20 10 and CG 20 37 if a later edition is used).
ii. Primary Coverage. For any Claims related to this Agreement, the
SUBDIVIDER's insurance coverage shall be primary insurance as respects the CITY, its officers,
officials, employees, and volunteers. Any insurance or self-insurance maintained by the CITY, its
officers, officials, employees, or volunteers shall be excess of the SUBDIVIDER's insurance and
shall not contribute with it.
iii. Notice of Cancellation. Each insurance policy required above shall provide
that coverage shall not be canceled, except with notice to the CITY.
iv. Waiver of Subrogation. SUBDIVIDER hereby grants to City a'waiver of any
right to subrogation which any insurer of said SUBDIVIDER may acquire against the CITY by
virtue of the payment of any loss under such insurance. SUBDIVIDER. agrees to obtain any
endorsement that may be necessary to affect this waiver of subrogation, but this provision applies
regardless of whether or not the CITY has received a waiver of subrogation endorsement from the
insurer.
v. Deductibles and Self -Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the CITY, The CITY may require the
SUBDIVIDER to purchase coverage with a lower deductible or retention or provide proof of
ability to pay losses and related investigations, claim administration, and defense expenses within
the retention.
vi. Certificate of Insurance and Endorsements. SUBDIVIDER shall famish the
CITY with original certificates and amendatory endorsements or copies of the applicable policy
language effecting coverage required by this Section. All certificates and endorsements are to be
received and approved by the CITY before the Work commences. However, failure to obtain the
required documents prior to the commencement of the Work shall not waive the SUBDIVIDER's
obligation to provide them. The MY reserves the right to require complete, certified copies of
all required insurance policies, including endorsements required by these specifications, at any
time.
vii. SUBDIVIDER's Consultants and Contractors. SUBDIVIDER shall include
all of their consultants and all prime contractors and subcontractors as insured under its policies
or shall furnish separate certificates and endorsements for each consultant and contractor. All
coverages for consultants and contractors shall be subject to all of the requirements stated in this
Agreement, including but not limited to naming additional insureds.
viii. Higher Limits. If the SUBDIVIDER in the ordinary course of its business
maintains higher limits than the minimums shown above, the CITY requires and shall be entitled
to coverage for the higher limits maintained by the SUBDIVIDER. Any available insurance
proceeds in excess of the specified minimum limits of insurance and coverage shall be available
to the CITY.
6, Property Rights. CITY shall grant to SUBDIVIDER the necessary licenses and permits
for the installation of said work within any portion of the public right of way to permit
completion of the Improvements.
7. Breach of A cement. If the SUBDIVIDER neglects, refuses, or fails to prosecute the
work with such diligence as to ensure its completion within the time specified, or within such
extensions of said time as have been granted by the CITY, or if the SUBDIVIDER violates or
neglects, refuses, or fails to perform satisfactorily any of the provisions of the plans and
specifications, he shall be in default of this agreement and notice in writing of such default shall
be served upon hire and upon any Surety in connection with this contract. The CITY shall have
the power, on recommendation of the City Engineer, to terminate all rights of the SUBDIVIDER
or his Surety then existing or which thereafter occur because of such default. The determination
by the City Engineer of the question as to whether any of the terms of the contract or
specifications have been violated, or have not been performed satisfactorily, shall be conclusive
upon the SUBDIVIDER, his Surety, and any and all other parties who may have any interest in
the contract or any portion thereof. The foregoing provisions of this section shall be in addition
to all other rights and remedies available to the CITY under law.
$ City's Attorney Fees and Costs. In case suit is brought upon this contract, the
SUBDIVIDER hereby agrees to pay to the CITY all attorney's fees and costs incurred by the
CITY.
9. Extension of time for Cam letion. It is further agreed by and between the parties
hereto, including the Surety or Sureties on any Bond attached to this contract, that in the event it
is deemed necessary to extend the time of completion of the work contemplated to be done under
this contract, said extension maybe granted by the CITY, either at its own option, or upon request
of the SUBDIVIDER, and shall in no way affect the validity of this contract or release the Surety
of Sureties on any Bond attached hereto.
10. Final Drawings. Upon completion of the Improvement and prior to final acceptance
and approval, SUBDIVIDER shall deliver to CITY a set of "as -built" drawings. These drawings
shall be in a form acceptable to the City Engineer, shall be certified as being "as -built" and shall
reflect the IMPROVEMENTS as actually constructed, with any and all changes incorporated
therein. The drawings shall be signed and sealed as accurate by the engineer of record.
11. Transfers: Assignments. SUBDIVIDER may assign its obligations under this
Agreement to successor owner(s) of the Property with the prior written consent of the CITY. In
connection with any such assignment, SUBDIVIDER. and its assignee shall execute and deliver to
CITY a written assignment and assumption agreement in a form acceptable to the City Attorney.
12. Binding Upon Heirs Successors and Assi s. The terms, covenants and conditions of
this Agreement shall be binding upon all heirs, successors and assigns of the parties hereto;
provided, however, that this Agreement shall not be binding upon a purchaser or transferee of any
portion of the Property unless this Agreement has been assigned pursuant to Section 11. If this
Agreement has not been assigned or if the assignment has not been consented to by CITY, it shall
remain binding on SUBDIVIDER.
13. Headings. Section headings in this Agreement are for convenience only and are not
intended to be used in interpreting or construing the terms, covenants or conditions contained in
this Agreement.
14. Severabilfty If any provision of this Agreement is held, to any extent, invalid, the
remainder of this Agreement shall not be affected, except as necessarily required by the invalid
provision, and shall remain in full force and effect.
15. Entire Agreement. The terms and conditions of this Agreement constitute the entire
agreement between CITY and SLJBDIV[DER with respect to the matters addressed in this
Agreement. This Agreement may not be altered, amended or modified without the written
consent of both parties.
16. Governing Law Venue. This Agreement shall be construed and enforced in
accordance with the laws of the State of California, without reference to choice of law provisions.
Any legal actions under this Agreement shall be brought only in the Superior Court of the County
of Los Angeles, State of California.
17. Authori . Each party executing this Agreement on behalf of a party represents and
warrants that such person is duly and validly authorized to do so on behalf of the entity it purports
to bind and if such party is a partnership, corporation or trustee, that such partnership, corporation
or trustee has full right and authority to enter into this Agreement and perform all of its
obligations hereunder.
18. Administration. The City Council designates the City Manager to administer and
oversee the performance of this Agreement, Except as otherwise required by law or by CITY
policy, all acts to be undertaken by the CITY in furtherance of this Agreement shall be
undertaken by the City Manager or his designee.
19. Runs with the Land,• Recordation, This Agreement pertains to and shall run with the
Property. Upon execution, this Agreement shall be recorded in the Official Records of Los
Angeles County,
IN WITNESS THEREOF, the parties hereto for themselves, their heirs, executors,
administrators, successors, and assigns do hereby agree to the full performance of this agreement
and affix their names, titles, and seals this day as above indicated.
f
By:
Name: r i
Title:
(Seal)
Note:
SIGNATURES MUST BE ACKNOWLEDGED
BEFORE A NOTARY PUBLIC.
(ATTACH APPROPRIATE ACKNOWLEDGEMENTS)
3I
Mayor of the City of Rosemead
Attested
City Clerk of the City of Rosemead
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California 7
County of Z&,5
On Zi,,20/4 before me,
Date e rr� y Here Insert Namand Title o e Officer
personally appeared _�/TA41 ____.I1 -- —
Name of Signer�j
who roved to me on the basis of satisfactoryevidence to be th erson whose name is re
scpribed to the within instrument and acknow eJged to me tha a he/the executed the ar�ie in
his er/their authorized capacity(jes, and that b is! er/their Signa#ure on the instrument the persons'
or the entity upon behalf of which the person acted, executed the i strument,
ERICKA HERNANDEZ
Notary Public - California z
ie
los Anpetea County }
Commission i 2158152
AIy Comm. Ex irta Jun 24.2020+
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
Signature
Signature of Notary Public
Place Notary Seal Above
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
Description of Attached Document.
Title or Type of Document:rI7�RuI1cr_-_._. 4I`l_/ Document
Number of Pages: __1Q Signer(s) Other Than Named Above: -_
Capacity(ies) Claimed by Signer(s)
Signer's Name: _
Corporate Officer — Title(s):
Partner -- 7- Limited l-- General
Individual I Attorney in Fact
Trustee Guardian or Conservator
Other:
Signer Is Representing:
ate; ,4 .90)
Signer's Name:
Corporate Officer — Title(s):
Partner — i 11 Limited i General
Individual i Attorney in Fact
Trustee Guardian or Conservator
Other -
D
Signer Is Representing: ____
Oc 2014 National Notary Association • www. NationaiNotary.org • 1 -B00 -US NOTARY (1-B00-876-6827) Item #5907
City of Rosemead
Construction Estimate
Tract No. 72347
Address: 8479 Garvey Avenue, Rosemead, CA
Consultant: Calland Engineering, Inc.
ffEU
DE CR I'T ON
QUANTITY
UNIT
VNITCOST
TTA
Clearing and Grubbing
I
LS
$
10,000.00
$
10,000.00
2
Disposal of Waste Material
l
LS
S
5,000.00
$
5,000.00
3
Install PCC Driveway Apron per SPPWC Std. Plans
577
SF
$
10.00
S
5,770.00
4
Install PCC Sidewalk per SPPWC Std. Plan
3890
SP
$
6.00
$
23.340.00
5
Install 36 -inch Box Parkway tree
10
EACH
wS
625,00
$
6,250.00
6
install Street Light Systctn
1
LS
$
50,000.00
$
50,000.00
7
Remove Existing and construct Asphalt Pavement
1290
SF
$
15.00
S
19,350.00
8
Cosntruct ADA ramp per SPPWC Std. Plan
l
EACM
$
2,500.00
S
2,500,00
9
Construct Curb drain Per SPPWC Std. Plan
4
EACH
$
1,000,00
S
4,000.00
10
Remove and Construct PCC Curb&Gutter per SPPWC Std. Plan,
375
LF
$
45,60
$
16,875.00
!Subtotal
$
143,065.00
Contingencies (10%)
$14,306.50
Total
$157,393.50
Construction Management
$
25,000.00
GRAND TOTAL
$182,393.50
W
No. 087
EMp
OF
Attachment B
Time Certificate of Deposit
NON-NEWTIABLE
ICON TRANSFERABLE
Vols CerriffeateEvidennu a
Deposit in Me Nanre(s) of.
TIME CERTIFICA'T'E OF DEPOSIT
PAY TO TRE ORDER OF CITY OF ROSEMEAD
K -MIN DEVELOPMENT LLC
8527 E GARVEY AVE
ROSEMEAD CA 91770
Account Number
215263
Portfolio Number
123397
Date Opened
04/27/2017
Term of Account
12 Months
(Initial) Maturity Date
04/27/2018
(Initial) Interest Rate
1.20%
Annual Percentage Yield
I. 4
RATE INFORMATION RENEWAL POLICY
p Fixed Rate t�-1 Automatic al
Renew
❑ Variable Rate Single Maturity
Deposit One Handred Elkho -7iva Thousand Three Hundred NSn-Tlsree Dollars And Fi(t� Cents _ s 182,393.50
.�
AUTHORIZED SidkATUFff
FIXED RATE; The interest rate on this certificate will remain the same for the Interest cannot remain on deposit. Payout of Interest Is mandatory for accounts
term of this certificate. where Interest is required to be paid out at least annually.
VARIABLE BATE: The interest rate on this certificate will be adjusted, subject MINIMUM BALANCE REQUIREMENT TO OPEN AN ACCOUNT: YOU
to the maximums and minimums, at the adjustment frequency. On the dates of must deposit a minimum of $ 1,000.00 to open a certificate. Terms vary
adjustment, the rate on the certificate will be NIA the index rate. This rate will from 14 days to over one year depending on the amount Of the certificate,
remain in effect until the next adjustment date, However, the Interest rate on the BALANCE COMPUTATION METHOD: We use the daily -balance method to
certificate will never exceed the maximum or fall below the minimum. The initial calculate Interest on your account, The daily -balance Is calculated by adding the
interest rate will be paid to the first adjustment dale. principal in the account for each day of the period and dividing that figure by the
COMPOUNDING AND CREDITING: Interest begins to accrue on the business number of days in the period.
day we receive credit for tha deposit of noncash items (for example, a check).
Interest will be Compounded: No Com 'n
Interest will be Credited: At Maturity
CALCULATION AND ACCRUAL OF INTEREST: Interest is calculated on a
simple Interest basis and is not compounded. Interest begins to accrue when the
Bank receives provisional credit.
EFFECT OF CLOSING AN ACCOUNT: If you close your account before
interest is credited, any accrued interest may be withheld as part of the early
withdrawal penalty.
RENEWAL POLICY:
Automatic Renewal - If checked above, this account will be automatically
renewed for like period, beginning on the maturity date. Interest rate for any
renewal period will be the rate in effect at the date of renewal, Your grace period
will be 1Q day(s) after maturity to withdraw the funds without a penalty, however,
if the funds are withdrawn, interest will not be paid after the maturity date,
Single Maturity - If checked above, this account will not automatically renew at
maturity. If you do not renew this account, interest will not accrue after maturity.
RATE INFORMATION: For interest rate and annual percentage yield
information, please contact any of our offices. The annual percentage yield
assumes that interest remains on deposit until maturity,
TRANSACTION LIMITATION; You cannot make additional deposits to this
account during the term of the certificate, Partial principal withdrawals are not
permitted. In addition, you cannot withdraw principal from this account without our
consent except on or after maturity (for automatically renewable certificate, there
Is a 10 day grace period after each renewal date during which withdrawals are
permitted without penalty. Certificates for 31 days or less there is a one -day grace
period.
EARLY WITHDRAWAL PENALTY: If we consent to a request for a
withdrawal that is otherwise not permitted, you may have to pay a penalty. The
penalty will be:
We may impose a penalty if you withdraw all of the principal before the maturity
date. For certificates with a maturity of 12 months and under, the fee imposed will
equal 30 days of Interest. For certificates with a maturity over 12 months, the fee
imposed will equal 90 days of interest. We reserve the right to treat any
withdrawal which would reduce the balance remaining in the account below its
minimum opening deposit, as a withdrawal of the entire account balance and
calculate the amount of the penalty accordingly. We will charge the penalty first
against the interest remaining in the account at the time of withdrawal, and any
excess will be deducted from the amount you withdraw.
Definitions: 'We,"our,' and 'us' mean the issuer of this account and 'you' and'your' mean the depositogs). 'Account' means the original certificate of deposit as well as the deposit it
evidences.
Transfer: 'Transfer means any change in ownership, withdrawal rights, or survivorship rights, including (but not limited to) any pledge or assignment of this account as collateral. You
cannot transfer this account without ourw4tten consent.
Primary Agreement: You agree to keep your funds with us in this account until the maturity date(An automatically renewable account matures at regular intervals). You may nottransfer
this account without first obtaining our written consent You must present this certificate when you request a withdrawal or transfer.
This account Is void if the deposit is made by any method requiring collection (such as a check) and the deposit is not immediately collected in full. If the deposit is made or payable in a
foreign currency, the amount of the deposltwhl be adjusted to reflect final exchange into U.S. dollars.
We may change any term of this agreement Rules governing changes in interest rates have been provided. For other change we will give you reasonable nolfce in writing or by any other
method permitted by law. If any notice is necessary, you at] agree that the notice will be sufficient if we mail It to the address listed on this form. You must notify us of any changa.
Withdrawals and Transfers: Only those of you who sign the permanent signature card may withdraw funds from this account (In appropriate cases, a court appointed representative, a
beneficiary of a trust or pay -ort -death account whose right of withdrawal has matured, or a newly appolnted and authorized representative of a legal entity may also wilh from this account),
The speciflc nuaer you who must agree to any withdrawal is written on the signature card.
Pledges: Any pledge of this account (to which we have agreed), must first be satisfied before the rights of any joint account survivor, pay -on -death beneficiary or (rust account beneficiary
become effective, Forexample, if on joint tenant pledges the accountfor payment of a debt and then dies, the surviving joint tenant's rights in this account are subject first to the payment of
the debt.
Set-off., You each agree thatwe may without prior notice and when permitted by law set off the funds in this account against any due and payable debt owed to us now or In the.future, by
any of you having the right of withdrawal, to the extent of such person's or legal entity's right to withdraw.
Prerenedaank, PSCDAA-t.UFF, RevisedOXIM6 Member FDIC